The Fed’s amnesty extended to shielding economic theory itself from blame

Evidence

Incredibly, in the face of the mayhem that ensued, Bernanke’s Fed has evaded suffering any consequences for its intellectual incompetence; it still does pretty much whatever it pleases, including continued deregulation of the shadow banking sector and frustrating Elizabeth Warren’s crusade to set up a fully independent consumer finance protection bureau; and yet, even that Great Bank Amnesty was not enough for Ben Bernanke. He decided he had to get the orthodox neoclassical economists off the hook for any conceptual error, as well. — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 513

Categorization

• XREF: connects to: Monetarism blamed the Depression on Fed policy, not underconsumption — Mark Blyth, Austerity: The History of a Dangerous…, 408; Federal Reserve exculpatory logic transformed herding and iron-hand discipline into rational consensus — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 533; Mainstream economists defended theory by scapegoating Greenspan-style market fundamentalism — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 700 (+2 more)

Broader Connections

• Federal Reserve exculpatory logic transformed herding and iron-hand discipline into rational consensus #expands (0.85) — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 533
• Mainstream economists defended theory by scapegoating Greenspan-style market fundamentalism #expands (0.80) — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 700
• Finance escaping crisis consequences legitimated the economics profession dodging blame #corroborates (0.75) — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 583